Taiwanese desktop PC shipment volume reached approximately 13.0 million units in the first quarter of 2011, down 12.1% sequentially compared with the fourth quarter of 2010 and down 2.2% year-on-year compared with the same period in 2010. It is observed that demand decrease from the external market and the defect found in Intel Sandy Bridge chipsets have both contributed to the shipment volume decline. Besides the DTR (Desktop Replacement) effect, demand for desktop PCs has been falling ever since the release of iPad and iPad-like PCs in the consumer market. Although it is projected that tablet PCs will not replace desktop PCs in terms of computing performance, the emergence of tablet PCs is observe to erode the IT budget originally allocated to desktop PCs, leading to delayed new desktop PC demand as a result. Moreover, it can be seen that tablet PCs further lower desktop PC demand in the mature markets. In the enterprise segment, new desktop PC demand was originally expected to stimulate shipment volume growth; however, the desktop PC industry recorded shipment volume declines in first quarter of 2011, signifying absence of large-scale desktop PC demand.